It looks like Joe’s Jeans Inc. is on its way to straightening out the stitches of its acquisition and investors now see it as a great fit.

When Joe’s bought rival jeans company Hudson Clothing Holdings Inc. for $97.6 million in September, Chief Executive Marc Crossman spoke about the revenue growth and cost savings his company was positioned to reap as a result of the deal. The company’s latest earnings show the predictions are coming true.

Shares of the Commerce denim maker soared 11 percent during the week ended July 16 to close at $1.14. The company was one of the biggest gainers on the LABJ Stock Index. (See Page 50.)

On July 10, Joe’s reported net income of $2.3 million (1 cent a share) in the three months ended May 31, compared with $1.3 million (2 cents) for the same quarter a year earlier. (There are more total shares outstanding this year.) Revenue skyrocketed 56 percent to $48.2 million, well above analyst expectations.

“We have been working these past two quarters to position both companies to realize the cost-savings benefits from our acquisition of Hudson,” Crossman said in a press release accompanying the earnings. “We expect to begin to see the benefit of that work in the third quarter of fiscal 2014. By year end, we expect to be running at an annualized cost-savings rate in excess of $10 million per year.”

The company did not respond to a request for comment.

Jeff Van Sinderen, an analyst who covers the company for West L.A. investment bank B. Riley & Co., raised his price target on Joe’s from $1.30 a share to $1.70 and upgraded the company from “neutral” to “buy” based on the latest earnings.

In his July 11 report on the company, Van Sinderen pointed toward the expected cost savings and said he was guardedly optimistic about the second half of this year. He also mentioned that the company’s success in getting rid of some excess inventory should pave the way to deploy money toward new product lines.

“In essence, Q2 was an inventory ‘clean-up’ quarter that we think has cleared the way for a generally healthier business going forward,” he wrote. “The inventory hangover from Q1 that lingered into Q2 appears to have abated. Dollars have freed up and that should fuel a trend of improvement in the second half.”